Here’s how much money it takes to live comfortably in Memphis, according to a new study
About the Study
A recent 2024 study conducted by SmartAsset revealed the annual salary needed for adults, both single and with families, to live comfortably within some of the most populated cities across the U.S. Among these cities, Memphis ranked 25th for the lowest annual salary needed to maintain a comfortable lifestyle.
Memphis’ Economic Breakdown
A single adult in Memphis needs to earn an hourly wage of $41.20, which totals to an annual income of $85,696, to afford a comfortable living standard. For a family composed of two working adults and two children, the combined salary equates to $194,106.
Nashville Compared to Memphis
In contrast, Nashville, another significant city in Tennessee, was tied with Austin, Texas, for the 64th spot among the 99 cities in terms of the lowest annual salary needed to live comfortably. A single adult residing in Nashville would need to earn an hourly wage of $47.96 or an annual income of $99,757. For a family of two working adults and two children, the combined salary surges up to $223,891.
Cities That Offer Lowest Salaries for Comfortable Living Conditions
The study also detailed the cities that necessitate the lowest incomes for comfortable living situations, with Houston, Texas leading the pack. The hourly wage rate required for a single adult to live harmoniously in Houston is $36.10, amounting to an annual income of $75,088. For a family of two adults and two children, the combined salary needed is $175,219.
Highly Priced Cities for Living Comfortably
In contrast, New York City tops the list for cities requiring the highest salaries to sustain a comfortable lifestyle. The hourly wage needed for a single adult is $66.62, ending in a robust annual income of $138,570. For a family of two working adults with two children, the combined salary needed totals to a hefty $318,406.
Data and Methodology Behind the Study
SmartAsset leveraged the living wage calculator data from the Massachusetts Institute of Technology (MIT) to gather the basic cost of living data for this study. MIT’s Living Wage Calculator data accounted for the costs of basic necessities like housing, food, transportation, and income taxes. Updated as of February 14, 2024, it offers a detailed snapshot of the cost of living in America’s largest cities.
The study assumes the living wage should cover needs, translating to 50% of the budget. From this, the total wage for individuals and families can be derived to spend 30% of the total on wants and 20% on savings or debt payments.
